Supertanker (VLCC) day rates from the Middle East to China have now been above $1.2 million for two weeks in a row.
So when you want to know real oil prices, don't stop at the futures price on your screen. Pull the physical price (about $16 a barrel above futures), then add in shipping (this chart, about $26 to $31 a barrel), then add in insurance (our estimate: about 9% to 14% of the cargo's value). That's a better estimate of the real oil price.